Tethyan Resources reports on busy revenue-free year

Tethyan Resources posted its interim report for the six months to 30 September on Wednesday, a period in which it once again made nil revenue, but continued its work to develop a viable operation.

The AIM-traded company incurred a loss of £577,000 during the period, which it put down to pursuing its exploration projects in the Balkans region and on covering the costs associated with operating as a listed company.

Its cash balance declined by £411,000 from £1.024m to £613,000.

The decline in the cash balance over the period was less than the loss figure, the board said, due to a cash injection received..

“We raised £163,400 gross in a private placement on 26 April and, subsequent to the reporting period, we are in the process of raising additional financing in two tranches, the second of which is expected to be completed following the general meeting of 12 December,” explained chairman Christopher Goss.

“As part of this latest financing, we have welcomed a strategic partner, Southern Arc which, on completion of the financing, is expected to hold 29.9% of Tethyan's shares in issue.”

On the operational front, following the firm’s announcement on 1 December 2015, Tethyan acquired all the outstanding shares of Moroccan Minerals on 25 May.

MML had signed an earn-in agreement with a local partner to earn up to an 80% interest in a polymetallic project in Serbia.

“We withdrew from the Chadine project on 6 October following a drilling campaign which confirmed the presence of mineralisation, but not of a grade or size that we considered potentially commercial,” Goss said.

“We are now managing two other projects, Suva Ruda and Gokcanica, both in South West Serbia.”

The company now has an option agreement for Suva Ruda, whereby it can acquire the project through purchase payments and by carrying out an agreed work programme

The agreement with Deep Research provides it with an option to purchase 100% of the Suva Ruda Licence or of the shares in Deep Research - at Tethyan's discretion - for a cash payment of €6m, plus a percentage of the eventual capital cost of building the mine.

“We can exercise this option at any time during the total duration of the licence and any future extensions of the licence, a minimum of 7 years from the date of the agreement.

“Tethyan needs to carry out the work programme by drilling 2,000m in 2016 on the 'Rudnitza' porphyry, in which is taking place in November-December.”

Goss said Tethyan may earn up to an 80% interest in the Gokcanica project by completing exploration worth $0.5m to be followed by a PFS and BFS.

“We have carried out some reconnaissance sampling at Gokcanica and plan to step up the programme next year.”

Goss said Tethyan has, over the six month reporting period, developed its presence in the Balkans, with two active projects in Serbia.

“We are also seeking other projects in the region, currently in Serbia and Bulgaria.

“We hope to progress the Suva Ruda and Gokcanica projects rapidly in the current reporting period and to make progress in acquiring interests in other projects.”